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19 Aug 2013
Flash: What’s the sentiment around the EUR/USD today? – Westpac and Commerzbank
FXstreet.com (Edinburgh) -The shared currency is trading on a softer tone at the beginning of the week, meandering between 1.3320 and 1.3340. An extension of a consolidation pattern would not surprise investors, as the euro calendar is pretty much empty before Wednesday, where the FOMC minutes will be released.
In the opinion of analysts at Westpac Global Strategy Group, “Our 1.3400 target remains close but still hard work. Eurozone peripheral sovereigns are trading well e.g. Spain-bunds yield spread is tumbling, while low northern summer volumes lend background support to EUR given the Eurozone’s current account surplus. Advance Aug PMIs should add to the glimmers of hope from Q2 GDP to keep the ECB on hold in Sep. Still see the next major move as downside, just not yet”.
In addition, Axel Rudolph, Senior Technical Analyst at Commerzbank, commented “A rise above the 1.3419 June peak would suggest ongoing strength to 1.3500/20… This is regarded as the last defence for the 1.3711 February high. We do not favour such a strong rise, though, and believe that the currency pair will falter around the 1.3500 mark”
In the opinion of analysts at Westpac Global Strategy Group, “Our 1.3400 target remains close but still hard work. Eurozone peripheral sovereigns are trading well e.g. Spain-bunds yield spread is tumbling, while low northern summer volumes lend background support to EUR given the Eurozone’s current account surplus. Advance Aug PMIs should add to the glimmers of hope from Q2 GDP to keep the ECB on hold in Sep. Still see the next major move as downside, just not yet”.
In addition, Axel Rudolph, Senior Technical Analyst at Commerzbank, commented “A rise above the 1.3419 June peak would suggest ongoing strength to 1.3500/20… This is regarded as the last defence for the 1.3711 February high. We do not favour such a strong rise, though, and believe that the currency pair will falter around the 1.3500 mark”